Finance Ministry Rejects “Hidden Spending” Claims, Defends Nigeria’s Fiscal Transparency
The Federal Ministry of Finance has dismissed recent media reports alleging hidden spending and diversion of federation revenue, describing such claims as a misinterpretation of findings from the World Bank’s latest Nigeria Development Update.
In a press statement signed by the Honourable Minister of State for Finance, Taiwo Oyedele, the ministry clarified that the reports wrongly portrayed deductions by the Federation Account Allocation Committee (FAAC) as waste or missing funds.
According to the ministry, these deductions are legitimate fiscal components, including statutory transfers, savings and investments, security expenditures, cost-of-collection charges, and refunds to government agencies. It stressed that transfers to states and other tiers of government are lawful obligations and not financial leakages.
The statement also criticised what it described as the selective use of outdated data by some commentators, noting that recent reforms highlighted in the World Bank report were ignored. Among these reforms is a newly signed executive order aimed at improving petroleum revenue remittances, expected to boost transparency and increase distributable revenue by about 0.4 percent of GDP annually.
Highlighting the broader economic outlook, the ministry pointed to positive trends identified by the World Bank, including more diversified economic growth, declining inflation, stronger external reserves, and an improved debt-to-GDP ratio—the first such improvement in over a decade.
The ministry emphasised that the World Bank report does not suggest a failing fiscal system but instead acknowledges that ongoing reforms are yielding results and should be sustained.
Reaffirming its commitment, the Federal Government stated it will continue efforts to enhance fiscal transparency, improve revenue mobilisation, and ensure efficient public spending. It also urged the media and stakeholders to report fiscal matters responsibly to maintain public confidence and support Nigeria’s reform agenda.
